PGN Plans To Allocate IDR 5.5 Trillion For Capital Expenditure In 2025, Focusing On Infrastructure And Energy Transition

PT Perusahaan Gas Negara Tbk (PGN) plans to allocate a capital expenditure (capex) of 338 million US dollars, equivalent to 5.5 trillion rupiah (based on an exchange rate of 16,300 rupiah per dollar), for the year 2025. PGN's CEO, Arief Setiawan Handoko, stated that this investment will primarily focus on developing natural gas infrastructure and supporting the national energy transition. "With optimal operational management and prudent financial strategies, we believe PGN can continue to be a key player in Indonesia's energy transition," he mentioned in a written statement on Saturday (February 1, 2025).

Specifically, 67 percent of the capex will be directed towards expanding the natural gas network, which includes 200,000 new connections in Sumatra and Java, potentially saving the government hundreds of billions of rupiah in LPG subsidies. "In addition to reducing LPG imports, the gas network offers a more efficient, clean, and sustainable energy solution for the community," he added.

The remaining 33 percent of PGN's capex will be invested in upstream oil and gas development. PGN plans to continue exploration in the Pangkah, Ketapang, and Fasken working areas and will seek an extension for the Muara Bakau contract. PGN's CFO, Fadjar Harianto Widodo, noted that the company aims for a 12 percent increase in gas distribution volume compared to the previous year, driven by demand from major industrial areas in Java and Sumatra. The company is also developing strategic gas pipelines, including the Tegal–Cilacap pipeline and the Cikampek–Plumpang oil pipeline, to support fuel distribution from the Cikampek terminal to Plumpang. Furthermore, PGN will continue its international LNG trading business as per existing contracts to strengthen its presence in the global market. "We are facing challenges in gas supply, but we are optimistic about managing this effectively through innovation and collaboration with all stakeholders," he concluded.

To support sustainability, PGN aims to reduce emissions by 4,372 tons of CO2 equivalent by 2025. This reduction will be achieved through operational efficiency and eco-friendly technologies, including the development of biomethane and diversification of gas by-products. "With strong innovation and collaboration, we are confident in our ability to tackle industry challenges and global market dynamics to ensure PGN's contribution to a greener energy future for Indonesia," concluded Arief.

Tag: Capex Energy Transition PGN